Price To Book Value (Historical)

Returns the historical price-to-book (P/B) ratio for a company. This compares market value to accounting book value.

Formula

P/B Ratio = Share Price / Book Value Per Share

Parameters

Parameter Required Description
Symbol Yes Stock ticker symbol
Year Yes Fiscal year or period code
Quarter No Quarter 1-4
TTM No "TTM" for trailing twelve months

Interpretation

  • P/B < 1 may indicate undervaluation (trading below book value)
  • P/B > 1 indicates premium to book value
  • Useful for asset-heavy industries (banks, real estate)

Examples

=hf_Price_to_Book_Value("AAPL", 2023, 4)
Q4 2023 P/B
=hf_Price_to_Book_Value("JPM", "ly")
Last year P/B (banks)
=hf_Price_to_Book_Value("BAC", 2023, , "TTM")
TTM P/B ratio

When to Use

  • Bank and financial analysis
  • Asset-heavy company valuation
  • Value investing screens
  • Historical valuation trends

When NOT to Use

Scenario Use Instead
Current P/B PricePerBook()
Book value per share hf_Book_Value_per_Share()
P/E ratio hf_Price_to_Earnings_Ratio()

Common Issues & FAQ

Q: Why is P/B very high for tech companies? A: Tech has few tangible assets, making book value low relative to market cap.

Q: When is P/B most useful? A: For asset-heavy industries like banks, insurance, real estate.

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MarketXLS Excel Add-in Tutorial - How to Use Price To Book Value (PB Ratio -Historical) and Other Financial Formulas
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